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Highlights:
- Rising costs of fossil fuels and climate change have raised food prices for British households by over £400.
- According to a new study, the average household bills in the UK have gone up by £11.4 billion in total due to these two reasons.
Millions of Brits are hit by the cost-of-living crisis. The situation is aggravated by rising inflation, which has touched 40-year-old levels and is projected to grow further in the coming months. Moreover, climate change and soaring fossil fuel prices have reportedly raised the average household food prices, making the situation worse for those in the low-income group.
Commissioned by think tank the Energy and Climate Intelligence Unit (ECIU), the study claims that, on average, the food bill for a household has jumped by over £400 this year.
Image source: © Ginasanders | Megapixl.com
The cost to the average family came out to be £407, or approximately £34 a month. Of this, climate change is responsible for nearly £170, while £236 is caused by soaring oil and gas prices, the researchers from the universities of Bournemouth, Exeter and Sheffield estimated.
In total, the average household bills in the UK have gone up by £11.4 billion due to the combined impacts of oil and gas prices and climate change.
Notably, the latest data on annual food inflation has shown that the prices have risen to almost 15%. Rising food prices were also the biggest contributors to September's Consumer Prices Index figures, which reached 10.1% during the month.
As climate change and oil and gas prices continue to hit food prices in the UK, consumers can look at the following London-listed stocks.
Tesco Plc (LON: TSCO)
Tesco Plc is a leading grocery retailer in the UK, and it owns the country's largest supermarket chain. Over the past 52 weeks, Tesco's stock price has slipped by nearly a quarter. On a year-to-date basis, it has fallen by more than 28%. Tesco's market cap is £15,422.78 million, with a turnover (on book) of £1,309,516.22. TSCO shares traded 0.39% lower at GBX 206.60 as of 8:46 am GMT+1 on Friday.
Premier Foods Plc (LON: PFD)
Premier Foods manufactures and distributes branded as well as own-label food. It belongs to the FTSE 250 index and has a market cap of £837.44 million. The company's earnings per share, or EPS, is 0.09, and the 12-month return is -8.70%. PFD shares were down 0.71% and traded at GBX 98.10 as of 8:53 am GMT+1 on Friday.
Associated British Foods Plc (LON: ABF)
The FTSE 100-listed company is in the business of food processing. The company's stock price has tumbled by more than 26% in the last 12 months, while the year-to-date return is further down at -34.46%. The company's market cap stands at £10,545.10 million, while the EPS is 0.61. ABF shares traded at GBX 1,316.00, down 1.20% as of 8:57 am GMT+1 on Friday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
